8/13/2019 0045_0046

1/2

www.asiabiotech.com Volume 14 > Number 5 & 6 > 2010 45

[Industry Watch]INDIA

Abbott Acquires IndiasPiramal Health for $3.72 bn

US-based pharma g iant

Abbott Laboratories is

buying Piramal Healthcares

Healthcare Solutions unit for $3.72

billion.

This deal enables Abbott to

become the largest pharma company

in India. Both Abbott and Piramal

are listed on Indian stock exchanges.

This further accelerates Abbotts

emerging markets growth followingthe recent acquisition of Solvay

Pharmaceuticals and announcements

last week of Abbotts collaboration

with Zydus Cadila.

This strategic action will

advance Abbott into the leading

market position in India, one of

the worlds most attractive and

rapidly growing markets, said

Miles D. White, chairman and chief

executive officer, Abbott. Ourstrong position in branded generics

and growing presence in emerging

markets is part of our ongoing

diversified pharmaceutical strategy,

complementing our market-leading

proprietary pharmaceutical offerings

and pipeline in developed markets.

With this deal, the combined

business will become the clear

market leader in India, with a market

share of approximately 7 percent,

said Ajay Piramal, chairman, PiramalGroup. This was our collective

vision and I am glad that those who

are part of Piramals Healthcare

Solutions business will realize this

dream.

The promoters of Piramal

Healthcare, which is one of Indias

top tier pharma company and among

the top ten, were looking to exit the

company for over two years now.

A source who did not want to

be named, said, Piramal over the

years and more since 2008, has been

bolstering its business division to

increase its valuation in the hope of

finding out good buyers or attracting

buyers

The source also said Piramal

was also talking to Pfizer and Sanofi

Aventis for a possible sellout. Allthree companiesAbbott, Pfizer,

GSK and Sanofi Aventiswere

looking to expand in emerging

markets such as India to offset a

slowdown in their home markets of

US and Europe.

Emerging markets represent one

of the greatest growth opportunities

in healthcare with pharmaceutical

sales expected to grow at three

times the rate of developed marketsand account for 70 percent of the

industrys growth over the next

several years.

Branded generics, products that

have significant brand equity in many

international markets, are the fastest-

growing segment within emerging

markets. Today, branded generics

account for approximately 25 percent

of the global pharmaceutical market,

have the majority of market share

in the largest emerging markets, andare expected to outpace growth of

both patented and traditional generic

products.

With nearly $8 billion in annual

sales this year, the market in India is

expected to more than double by

2015. Abbott estimates the growth

of its India pharmaceutical business

with Piramal to approach 20 percent

annually, with expected sales of

more than $2.5 billion by 2020. The

combined Abbott and Piramal sales

force will be the largest in India and

will market Piramals portfolio of

approximately 350 branded generic

products, with market-leading brands

that span multiple therapeutic areas,

including antibiotics, respiratory,

cardiovascular and neuroscience.

Under the te rms of theagreement, Abbott will purchase

the assets of Piramals Healthcare

Solutions business for a $2.12

billion up-front payment with $400

million annual payments for the next

four years, beginning in 2011. The

transaction will not impact Abbotts

ongoing earnings per share guidance

in 2010.

Abbott also recently created

an Established Products Division tofocus on the products, markets and

commercial opportunities for branded

generic pharmaceuticals outside of

the US. Each of these steps further

diversify our pharmaceutical business

and complement our market-leading

proprietary pharmaceutical offerings

and pipeline in developed markets,

a Abbott representative said.

The stock price of Piramal

fell after the news broke out. The

promoters have been repeatedlydenying their intention to sell-out.

This acquisition comes two years

after Ranbaxy, the Indian pharma

giant was acquired by Japans Daiichi

Sankyo in a $5 billion deal.

About AbbottAbbott is a global, broad-based health

care company devoted to discovering

8/13/2019 0045_0046

2/2

46Volume 14 > Number 5 & 6 > 2010 www.asiabiotech.com

[Industry Watch]INDIA

new medicines, new technologies

and new ways to manage health.

Their products span the continuum

of care, from nutritional products

and laboratory diagnostics through

medical devices and pharmaceutical

therapies. Their comprehensive line

of products encircles life itself -

addressing important health needs

from infancy to the golden years.

About Piramal Healthcare

LtdPiramal Healthcare Ltd. is the

leader in pharmaceutical contract

manufacturing. The Piramal Group

has interests spanning several industry

spectrums ranging healthcare,

glass manufacturing, original drug

discovery, private equity and real

estate. Healthcare constitutes

approximately 50% of the Groups

revenues with pharmaceutical

contract manufacturing forming a

significant portion.

Pharma Solutions (a division of

Piramal Healthcare Ltd) is one of

the worlds leading pharmaceutical

manufacturing company offering a

unique full lifecycle partnership and

drug development services to small/

virtual and big pharma companies.

Contact Details:

Abbott India Limited

Address: 3-4 Corporate Park Sion-Trombay Road

Mumbai 400 071 India

Tel: +91 22 679 78 888

Fax: +91 22 679 78 902

URL: www.abbott.com

Contact Details:

Piramal Healthcare

Address: Ennore Express Highway,

Chennai 600 057,

Tamil Nadu,

India.

Tel: +91 044 25737728/29

Fax: +91 044 2573 6271

URL: www.piramalpharmasolutions.

com

Mantrax Ventures will

represent TCGLS in

Australia and enable

Australian companies to attain cost-

effective, accelerated development of

their latent IP and product pipelines.

TCGLS a s s i s t s pa r tne r

companies to expand and strengthen

product pipelines. The in-house

expertise, track-record and unique

integrated research platform

significantly lowers up-front and

ongoing costs of research and

development, said Dr Kapil Talwar,

Director, Mantrax Ventures.

TCGLS, as part of the New

York based The Chatterjee Group

(TCG), has trust based relationships

Mantrax Ventures and TCG

Lifesciences Collaboratewith over 200 clients including

15 out of the top 20 global

pharmaceutical companies. Pfizer

recently entered into a collaborative

discovery agreement with TCGLS

for developing a portfolio of pre-

clinical candidate molecules.

Our talented scientists and

state-of-the-art research facilitiesenable us to engage seamlessly

with our partners to accelerate and

enhance the drug development

process securely under one roof, said

Mr Swapan Bhattacharya, Managing

Director, TCG Lifesciences.

We want to dedicate ourselves

to helping unlock the vast potential

of intellectual property assets which

exist at Australian life science

companies. Our flexible engagement

models help in creating a win-win

situation across stakeholders. A

large benefit of our outsourcing

model is that our partners are

serviced by a dedicated project

team and all intellectual property

generated is owned by them, he

added.

The g lobal outsourcing

services range from pre-clinical

candidate nomination to clinical

trials management and synthesis of

cGMP drug substances. Capabilities

are maintained within leading

technology park facilities and are

maintained by over 1,000 scientists